deduction under section 24 of Income Tax Act

This query is : Resolved

pkkapoor (Querist)
Follow

10 March 2009 I have paid prepayment penalty of Rs.15000 for shifting my house building loan from a higher interest being housing loan from bank "A" to low interest bearing housing loan from Bank "B'

Please advise:
1. I can treat prepayment penalty as interest for deduction section 24 of I T Act

2 Whether I can claim interest paid to bank A (APril 2008 to June 2008)and B (July 2008 to March 2009)uner I T Act

chetan soni

chetan soni (Expert)
Follow

10 March 2009 Sec 24(b) strictly restricted to interest paid on borrowed capital fr hsg loan & it does not allow the penalty paid for forclouser of hsg loan.

Yes, you can claim interest paid to difference banks for hsg loan.